NYC Mayor Mamdani Signs Executive Orders to Stop Junk Fees and Subscription Tricks
Following the signing, DCWP will begin outreach to businesses to ensure compliance with city law and signal immediate consequences. Contact an experienced New York DCWP defense lawyer if you have been contacted by the NY DCWP or the NY Office of the Attorney General relating your billing practices.
“New Yorkers deserve to know exactly what they are paying, how much it will cost, and whether they are signing up for an ongoing charge — before a single dollar leaves their account. Instead, too many people are hit with hidden fees and blindsided by subscription traps they never knowingly agreed to and cannot easily escape,” said Mayor Mamdani. “In the midst of an affordability crisis that is already pushing working New Yorkers out of their city, these deceptive practices put even more strain on household budgets. This executive order restores what should have always been the case: transparency in pricing, accountability for companies, and full compliance with the law.”
“New Yorkers are paying too much for everyday services because of hidden, unexpected junk fees and illegal subscriptions traps. These fees and traps, which have made daily life harder and drained household budgets, have gone unchecked for far too long. It is time to hold companies accountable for deceptive practices and give New Yorkers back the power and transparency they deserve — so they can make purchases without being blindsided by costs they cannot avoid,” said Sam Levine, Commissioner of the Department of Consumer and Worker Protection.
“As former Commissioner of the Department of Consumer and Worker Protection, I saw firsthand how deceptive junk fees and abusive subscription practices erode household finances and undermine trust in our marketplace. The Mayor’s executive orders establish a strong and coordinated framework to confront these practices by strengthening enforcement, increasing price transparency, and aligning action across city and state partners. We must protect New Yorkers from unexpected and unavoidable charges, support honest businesses that disclose prices upfront, and reinforce a basic principle that every transaction in this city should be clear and fair. I commend Mayor Mamdani for taking decisive action, and I look forward to working with him to advance consumer protection and affordability for all New Yorkers,” said Council Member Julie Menin.
“From hidden junk fees to predatory subscription traps, companies are using a wide range of deceptive tactics to raise costs for New Yorkers,” said Attorney General James. “For years my office has been fighting back, holding companies accountable for taking advantage of consumers and returning millions of dollars to those who were cheated. I applaud Mayor Mamdani for protecting New Yorkers with these new executive orders and look forward to working with his administration to lower costs.”
The announcement comes on the heels of New York enacting the FAIR Act, a historic consumer protection bill that significantly expands the scope of General Business Law Section 349 and to cover unfair, abusive, and deceptive business practices.
EXECUTIVE ORDER NO. 9 — COMBATTING HIDDEN JUNK FEES:
According the announcement, “a growing affordability crisis, many companies continue to mislead New Yorkers into paying junk fees — fees that do not meaningfully contribute to the service and are often hidden until after a purchase decision has been made.” Junk fees are also heavily regulated at the federal level by the Federal Trade Commission.
By signing this executive order to take on junk fees, the Mamdani administration is signaling that it will aggressively crack down on companies who mislead New Yorkers into paying more for services. The first executive order signed by Mayor Mamdani to combat junk fees will:
- Establish a Citywide Junk Fee Task Force: The task force will be chaired by Deputy Mayor of Economic Justice Julie Su and DCWP Commissioner Sam Levine and will work to advance the city’s work in combatting junk fees and making New York City more affordable.
- Combat Hidden Junk Fees: Direct the DCWP to consider and take any actions it deems appropriate to crack down on deceptive or hidden fees that unfairly burden New Yorkers.
- Enforce Compliance with City Law: Directs the DCWP to monitor compliance, investigate potential violations, and take enforcement actions as authorized under applicable laws and rules, including any new rules designed to address hidden junk fees.
EXECUTIVE ORDER NO. 10 — FIGHTING SUBSCRIPTION TRICKS AND TRAPS
The announcement also states that “[t]oo many New Yorkers are being tricked into subscriptions that quietly drain their money.” Mayor Mamdani also signed an executive order to fight subscription tricks and traps.
This executive order:
- Empowers the city to use the full tools and authorities of the office to crack down on illegal subscription practices
- Directs the DCWP to monitor, investigate, and enforce violations related to subscription tricks and traps
- Urges DCWP to make recommendations to the City Council to fight subscription tricks and traps
- Calls for coordination with agencies, including the Law Department, and other offices, like the New York State Attorney General to ensure maximum impact in combating subscription traps
“Businesses use a range of deceptive practices to trap customers in unwanted subscriptions, including so-called “free trials” that automatically convert into paid plans with critical disclosures buried in fine print or behind hyper links; adding monthly fees or add-on charges after payment information has already been collected; disguising subscriptions as one-time purchases; bundling subscriptions with other services so consumers do not realize they are paying for an additional product; and making cancellation intentionally difficult — forcing consumers to call during limited hours, remember or reset login credentials, or navigate multiple screens before they can cancel,” the announcement states.
The Mamdani administration is signaling that it intends to hold companies accountable, leveling the playing field while protecting New Yorkers from deceptive practices.
Takeaway: DCWP will soon begin outreach to businesses to ensure compliance with city law and signal immediate consequences. Alongside, Attorney General Tish James, Council Member Julie Menin, and DCWP Commissioner Sam Levine, Mayor Mamdani signed two executive orders to protect New Yorkers against misleading fees and deceptive subscription traps. Contact a seasoned attorney general defense lawyer if you are interested in implementing preventative compliance measures, or if you are the subject of a local, state or federal investigation relating to your billing practices.
Richard B. Newman is an FTC CID attorney at Hinch Newman LLP.
Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.
